DALLAS — The Texas Department of Transportation would get an additional $900 million per year in bonding authority under a constitutional amendment unanimously approved by the Texas Senate in a special session.
The Texas House now must pass the measure, which would then require voter approval if signed by Gov. Rick Perry.
Senate Joint Resolution 2 would dedicate half of all oil and gas severance taxes currently transferred to the economic stabilization fund, commonly known as the rainy day fund, to the state highway fund. The measure also allows the state highway fund to repay principal and interest on bonds.
"In addition to its current funding, TxDOT needs a revenue stream that allows for future planning to address its growing needs," said Senate Transportation Chairman Robert Nichols, R-Jacksonville, the bill's sponsor.
According to the State Comptroller, SJR 2 would provide at least $900 million per year for the state highway fund for next two years.
The measure would halt any deposits in the highway fund if such a deposit would take the rainy day fund below $6 billion.
The rainy day fund is expected to reach about $12 billion at the end of the fiscal year. However, $2 billion has already been dedicated to a water bond fund that would also need voter approval Nov. 5.
Sen. Robert Duncan, R-Lubbock, and Sen. Tommy Williams, R-The Woodlands, questioned whether the $6 billion restriction was necessary.
"Unfortunately we are in an echo chamber here and people repeat things over and over again and think they are true," said Williams, the Senate Finance Committee chairman. "I'm not sure $6 billion is the right number, I'm not sure I think that any number is the right number for this purpose."
Sen. Dan Patrick, R-Houston, sought the $6 billion rainy day provision, citing the need for the state to preserve its credit ratings.
"I think this is a very good conservative approach to preserving the rainy day fund, growing the rainy day fund and providing funding for transportation," Patrick said.
The state House could take up the measure on Thursday at the earliest, where it is expected to face more opposition.
Sen. Wendy Davis, D-Fort Worth, questioned Nichols over whether the proposal would restrict a portion of oil and gas taxes that the Texas Constitution dedicates to public education. She asked for a "clarification that there is a still continuing obligation" for that money to flow to public schools.
Nichols said that both the comptroller and the Legislative Budget Board had been "very clear" that such a clarification was not needed.
